2009 (11) TMI 631 - HC - Central Excise

Waiver of Pre-deposit - Tribunal imposed a condition of pre-deposit of Rs. 55,000/- within four weeks and on such deposit, pre-deposit of the balance tax and interest shall stand waived and recovery shall stand stayed - petitioner informed that the time granted by the Tribunal for pre-deposit is expired. Considering the facts and circumstances of the case, the petitioner is given four more weeks to comply with the interim order passed by the Tribunal, failing which the interim order passed by the Tribunal will stand restored.

Summary

Issues:
Challenge to order of Customs Excise and Service Tax Appellate Tribunal (CESTAT) regarding pre-deposit in appeal.

Analysis:
The petitioner challenged the order of CESTAT, South Zonal Bench, Chennai, which imposed a condition of pre-deposit of Rs. 55,000 within four weeks pending the appeal. The High Court noted that the Tribunal has discretion to waive pre-deposit but upheld the Tribunal's decision in this case. The Court emphasized that the Tribunal's order is purely discretionary and subject to the appeal's outcome, and interference under Article 226 of the Constitution of India is not warranted. The Court highlighted that the deposit is not being forfeited by the Revenue and is contingent upon the appeal's result, leading to the dismissal of the Writ Petition without costs.

The Court further addressed the petitioner's concern regarding the expired time for pre-deposit granted by the Tribunal. In light of the circumstances, the petitioner was given an additional four weeks to comply with the interim order; failure to do so would result in the restoration of the Tribunal's interim order. This extension provided an opportunity for the petitioner to fulfill the pre-deposit condition set by the Tribunal before facing the consequences of non-compliance.